AMR Prices $400 Million Stock Offering
Associated Press | May 16, 2006
FORT WORTH, Texas -- AMR Corp., the parent of American Airlines, said Tuesday it has priced a public offering of $400 million in newly issued shares at $26.80 per share.
The offering will dilute AMR's current shares by more than 7 percent.
Shares of AMR fell $2.03 or 7.4 percent, to close at $25.60 Tuesday on the New York Stock Exchange.
Fort Worth-based AMR had about 196 million shares as of May 11, and the offering will include about 15 million new shares, a spokesman said.
AMR said it will also give underwriter Merrill Lynch & Co. 30 days to buy up to 2.25 million additional shares to cover over-allotments.
The company said it plans to use the money for general corporate purposes, and expects the shares to be issued and delivered on Friday.